Should You Invest In Edtech Companies Now That Shopfronts Are Gradually Opening Up?
With the onset of the pandemic, a massive shift is witnessed amid people. Even, companies have started exploring different options to minimise losses and work as per new normal. In the current times, when recruiting has slowed down, a rise in internal hiring is seen amongst corporates, according to LinkedIn’s report. This symbolises that companies are making the best use of available resources.
In the crisis, various companies went out of business and Indian economy started falling apart. Only a handful of sectors grew substantially during the lockdown period-- edtech, pharmaceutical, and food, to name a few. Amid all, the edtech sector has seen a sudden surge in users and earnings. General masses and professionals diverted their minds in learning new skills as well as upskilling themselves. Owing to which, the sector saw the largest count of organic users during the lockdown.
According to a report by NASSCOM, online education offerings for Classes 1 to 12 are projected to increase 6.3 times by 2022, creating a $1.7 billion market, while the post-K12 market is set to grow 3.7 times to touch $1.8 billion. This growth is expected to be driven by K12, higher education, test preparation and upskilling categories. With more and more adoption towards Edtech and a different outlook for education in the post COVID world.
In recent times, the edtech sector will flourish even more and thus, it is the time to invest in the edtech sector.
Many countries are doing trails to develop a COVID vaccine. However, countries will sooner come up with a vaccine that could prevent the disease completely. Despite all this, work, education and daily chores have to continue in one way or another. When academic institutions are closed and education is suffered, edtech companies are helping the students. They not only help prepare them for competitive exams but prepare them for the outside world.
"Parents will not allow students to go to schools and coaching centres. If the coronavirus cannot be controlled, then the situation can be risky. Also, there would not be many students enrolling into schools and coaching institutions now. The positive aspect of the education industry is that academic institutions have started delivering online education to students," Ruby Saurakhia, Founder of Ray Careers, said.
Embracing the technology has become important; so, embrace it in the right manner. Other industrialists can take this opportunity and infuse money in the edtech sector.
Explore Other Industries
With the help of technology and edtech, students can get a cue about other sectors and thus, ascertain the right niche. These factors help them to step into the right sector and choose an apt career path.
"The education is giving much more exposure than when we were in the school back in 2008, there were limited options. Using this platform, you can explore ten other industries before actually buying books for that. You can use social media platforms and explore any industry as in the early 21st century, there were not many options as such. In the current scenario, when schools are closed; students are still pursuing education through edtech companies like Unacademy, and BJYU’s. This same is happening through technology; now students can learn at their own pace by using technology," Vivek Gupta, Founder at Expertrons, told BusinessEx.
As parents and students are developing a growing interest in edtech, FDIs are increasing in the sector. Thus, it is a cue for Indian entrepreneurs to step into the market and bet on the Indian edtech companies.
In the present scenario, students feel difficulty in preparing for exams and also, understanding school’s lessons. With the help of edtech, various problems have been resolved as the edtech firms create content considering every child’s mindset, which is comprised of games and stories
"Edtech industry is giving a product which starts from a classroom and aggregative play. The edtech firms not only create their own content but also look for best partners getting their products to India or partnering with the Indian businesses," Amit Kapoor, Co-founder at Expertrons.
This exhibits how the edtech sector is helping out students in grasping online education and embracing the new normal.
As the edtech sector is playing a crucial role in upskilling professionals, as well as students, it is the apt time for budding entrepreneurs and industrialists to invest in edtech companies. Thus, assess the time and infuse into the right firm.
More from Jaspreet Kaur
- July 11, 20173 Min Read
- January 10, 20183 Min Read
- January 20, 20183 Min Read
- January 22, 20183 Min Read
- January 24, 20183 Min Read
- January 29, 20183 Min Read
- January 30, 20183 Min Read
- January 31, 20183 Min Read
- February 05, 20183 Min Read
- February 19, 20183 Min Read
- February 19, 20183 Min Read
- February 20, 20183 Min Read
Recommended for you
- May 18, 2021
- May 17, 2021
- May 13, 2021